What is AADR?

AADR is an informal appeals process that uses a neutral intermediary, the Administrative Appeals Office (AAO), to resolve tax disputes between DOTAX and a taxpayer or return preparer that involve a proposed, final, or return preparer penalty assessment. The goal of AADR is to reduce the time and resources spent on appeals by using AAO to help the parties resolve tax disputes through a cooperative effort.

How Does It Work?

AAO works with the Compliance Division and the taxpayer or return preparer by phone, mail, or in person to understand and resolve tax disputes based on the law. When the solution to a dispute is not clear, the Administrative Appeals Officer is authorized to settle the dispute based on the hazards of litigation, equally considering the positions of the Compliance Division and the taxpayer or return preparer.

Program Benefits

  • Fair and neutral evaluation of tax disputes.
  • Timely resolution. Complete the process within 6-12 months upon acceptance.
  • Save time, money, & resources. It’s a quicker and less costly alternative to litigation.
  • Free. There are no fees to apply.

Page Last Updated: January 28, 2016